North Carolina Down Payment Support Programs

Payments Gateway - The North Carolina Housing Finance Agency has two great programs for first-time Home Buyers. These systems would be the deposit Assistance System and also the Mortgage Credit Certificate.

If you meet the requirements for one of those programs and you purchase a home between December 1, 2009 and January 1, 2009, you can even qualify for the $8,000 tax credit just enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? There is a First Time Home Buyer someone who has not owned a house in the prior three years. That is precisely the same qualifying definition for the $8,000 tax credit.

What's a Mortgage Credit Certificate and Who Qualifies?

A Mortgage Credit Certificate (MCC) is a national tax credit to assist home buyers with average and low incomes. All home owners can claim an itemized deduction for mortgage interest. An MCC “reduces your tax liability depending on a percentage of the mortgage interest that you pay.

You can claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes, in case you qualify for the MCC. It is possible to save around $2,000 on your taxes.

You'll have the ability to combine this if you do qualify for 2009. This might reduce a purchaser's tax liability .

Who qualifies for an MCC is based in your income and the purchase price of the home you're purchasing. Household income is defined as the “gross income of the mortgagor and any individual anticipated to live in the home who is 18 years of age or older.”

The income and house price limitations that apply in Orange, Durham and Chatham Counties are given below.

MCC Income Limitations 1 Person $61,500 2 Individuals $61,500 3 Individuals $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New House $220,000 Existing Residence $210,000

The buyer only has to pay and the load would pay around .

This program has more stringent income limitations than the MCC program summarized above. Like the MCC application, it can be used in conjunction with all the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The deposit help, nevertheless, cannot be employed along together with the MCC. That is an either or situation.

House price limits that apply in Orange, Durham and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limitations

1 Man $39,950 2 Individuals $45,650 3 Persons $51,350 4 Persons $57,050

Down Payment Support Sales Price Limits New Dwelling $210,000 Existing Residence $210,000